The bill revises laws concerning residential rental application fees in Montana, establishing new requirements for landlords and property managers. It mandates that if an applicant does not enter into a rental agreement, the landlord must reimburse the application fee within 20 days, allowing for deductions of specific out-of-pocket costs. Additionally, landlords can waive the application fee if they accept a valid credit or criminal background check performed within the last six months. The bill also requires landlords to provide written notice detailing the allocation of the application fee and prohibits retaining costs for services not performed.

Furthermore, the bill introduces civil liability for landlords who wrongfully withhold application fees, allowing applicants to seek damages in court. It defines key terms such as "application fee" and "cost," with the latter capped at $25 for specific services. The act is set to take effect immediately upon passage and will apply to application fees collected after the effective date.